4 Stocks Making Big-Volume Moves - views

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don’t just look at a stock’s price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it’s always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Genomic Health (GHDX) which is engaged in the development and commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer. This stock closed up 8.2% at $35.84 on Tuesday.

From a technical perspective, GHDX ripped to the upside and closed above its 50-day moving average of $34.61 with above-average volume. This move is quickly pushing GHDX within range of triggering a major breakout trade. That trade will hit once GHDX manages to take out some near-term overhead resistance levels at $36.83 to $37.44 with high volume.

Traders should now look for long-biased trades in GHDX as long as its trending above its 50-day, and then once it sustains a move or close above those breakout levels with volume that hits near or above 170,706 shares. If that breakout triggers soon, then GHDX will setup to trend north of $40.

Del Frisco’s Restaurant Group

Del Frisco’s Restaurant Group (DFRG) develops, owns and operates three contemporary, high-end, complementary restaurants. This stock closed up 9.4% at $16.41 on Tuesday.

From a technical perspective, DFRG bounced strongly here right off some near-term support at $14.50 to $15 with above-average volume. This bounce is quickly pushing DFRG within range of triggering a near-term breakout trade. That trade will hit once DFRG manages to take out its 52-week high of $16.74 with high volume.

Traders should now look for long-biased trades in DFRG as long as it’s trending above Tuesday’s low of $15.19, and then once it sustains a move or close above $16.74 with volume that hits near or above 145,727 shares. If that breakout triggers soon, then look for DFRG to tag $20 or higher in the near future.

Fossil

Fossil (FOSL) is a global design, marketing and distribution company that specializes in consumer fashion accessories. This stock closed up 7.3% to $91.31 on Tuesday.

Tuesday's Volume: 2.1 million

Average Volume: 1.1 million

Volume % Change: 85%

Shares of FOSL ripped higher on Tuesday after Citigroup upgraded the stock to buy from neutral with $100 price target. The firm said Fossil’s valuation should increase as investors become more confident in the company’s outlook.

From a technical perspective, FOSL trended up and moved back above its 50-day moving average of $86.78 with above-average volume. This move is quickly pushing FOSL within range of triggering a major breakout trade. That trade will hit once FOSL manages to take out some near-term overhead resistance levels at $93.69 to $94.84 with high volume.

Traders should now look for long-biased trades in FOSL as long as it’s trending above some near-term overhead resistance at $89.56, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.1 million shares. If FOSL triggers that breakout soon, then this stock will have a great chance to re-fill some of its previous gap from May that started at around $125.

ICU Medical

ICU Medical (ICUI) is engaged in the development, manufacturing and sale of proprietary, disposable medical connection systems for use in vascular therapy applications. This stock closed up 2.4% at $61.43 on Tuesday.

Tuesday's Volume: 160,203

Average Volume: 88,622

Volume % Change: 81%

From a technical perspective, ICUI bounced notably higher here right off some near-term support at $58.84 with above-average volume. This stock has been uptrending very strong for the last four months, with shares soaring from a low of $50.19 to its recent high of $62.79. During that uptrend, shares of ICUI have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing ICUI within range of triggering a near-term breakout trade. That trade will hit once ICUI manages to take out some near-term overhead resistance levels at $62 to $62.79 with high volume.

Traders should now look for long-biased trades in ICUI once it manages to sustain a move or close above $62 to $62.79 with volume that registers near or above 87,874 shares. If that breakout triggers soon, then ICUI will enter new 52-week high territory, which is bullish price action. Some upside targets are $65 to $70 if we get that action soon.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.